Posted 15th June 2023

Silver Price News: Prospect of More Rate Hikes Halts Silver’s Recovery

silver bar bullion

The prospect of further interest rate hikes to come from the Federal Reserve allied with today’s confirmation of the latest increase by the European Central Bank has stopped silver’s steady climb in its tracks, with the price dipping back towards $23 an ounce.

Just as silver looked set for a period free of macroeconomic interference, yesterday’s Fed news pointed to at least one more hike in its benchmark rate to ensure it has well and truly tamed stubbornly high inflation. 

Given that the Fed’s series of interest rate hikes over the last year or so have been the single biggest drawback for silver, the likelihood of that cycle not yet being complete has hit silver’s price. How lasting the dip proves will largely depend on data released between now and the Fed’s next meeting.

If the Fed’s current semi-hawkish stance proves more bark than bite then attention can once again shift back to silver’s resounding fundamental case with the metal in hot industrial demand. As such, an investor looking to the long-term may see today’s dip as another opportunity to top up holdings before the inevitable climb higher. 

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